Returning GST to councils would cover 'infrastructure cost increases' to councils

Brad Olsen says returning GST on rates to councils is a tricky balancing act. (Image: NZME)

Tue, 30 Apr 2024

Returning GST collected on rates to councils would go a long way towards compensating councils for infrastructure cost increases, an economist says. New research from Infometrics principal economist Brad Olsen shows that returning GST on council rates would cost the government but make a big difference to councils. Olsen said the rebate could return $1.1 billion to local government, the equivalent of 9.2% of council operating income nationwide and 8.6% of operating expenses, according to 2022 rates data. “To give you an ide...

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